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IBD's Paul Katzeff: Here's how to add $152K to your balance, with your boss paying for half
wow, save more, get full employer match he gets paid for these math articles?
And he doesn't even have to get the math right.
The text says: increase the total contributions by 2%, benefit to the tune of $152,000. If the employer were to kick in (via matching) half of those extra contributions, then effectively you would have made "Your Boss Add $76K To Your 401(k)", as the headline reads.
As you note, that would require a full match.
But the text says that employers generally kick in only 1/3 (50% match), so typically you would "Make Your Boss Add $51K to Your 401(k)" (give or take rounding).
Comments
he gets paid for these math articles?
The text says: increase the total contributions by 2%, benefit to the tune of $152,000. If the employer were to kick in (via matching) half of those extra contributions, then effectively you would have made "Your Boss Add $76K To Your 401(k)", as the headline reads.
As you note, that would require a full match.
But the text says that employers generally kick in only 1/3 (50% match), so typically you would "Make Your Boss Add $51K to Your 401(k)" (give or take rounding).